60.1K

Verified Solution

Link Copied!

Answer this question

and please explain everything how we got it

How we should know if it's gain or loss

Question 6 -L06 (Cash Flow Statement) Given below are the financial statements for Computer Services Company for the years 2014 & 2015 with additional information (000 omitted) 2015 Balance Sheets os on December 31 2014 Assets Cash 2,784 Accounts Receivable 1,775 Inventories 1.988 Prepaid Expenses 1.135 Equipment 13,000 Accumulated Depreciation - Equipment 13.520) TOTAL ASSETS 17,162 3,084 1,574 2.480 1,012 16,400 14,760 19,790 Liabilities & Shareholders' Equity Accounts Payable Loan Common Stock Retained Earnings TOTAL LIABILITIES & SH. EQUITY 718 2.976 11,600 1,868 17,162 1,228 3,172 12,392 2.998 19,790 Income statement for the year ended 31 December 2015 Total Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Administrative expenses Net Income 10.268 15.5021 4,766 (3,216) 1.550 Additional Information: During the year 2015, 1. Equipment with an original cost of $400 and accumulated depreciation of $124 were sold for $168 giving a loss of $108. This loss is included in the administrative expenses. The company also purchased some other equipment of $3,800 cash during the year. 2. The depreciation charge is also included in the administrative expenses amount in the Income Statement of $1,364. 3. Dividends were paid during the year of $420. 4. The company borrowed bank loan of $ 196 and received it in cash. 5. Issued common stock for $792 cash. Required Using Indirect Method Prepare Cash Flow Statement for the year ended December 31, 2015

Answer & Explanation Solved by verified expert

See Answer